Non-recourse loan for a trust

Can a trust get a non-recourse loan for 60% or 70% of the contract price for buying a block of units or townhouses, say 4 in a block? Would this be doable and if so, which lenders?
 
Can a trust get a non-recourse loan for 60% or 70% of the contract price for buying a block of units or townhouses, say 4 in a block? Would this be doable and if so, which lenders?

Not sure if you have ever purchased a 4 pack but you will most likely have issues with the valuation which means you need to come up with more money. Also not a lot of lenders do 4 units on a single title (CBA, RAMS, Bankwest, Heritage, etc) under resi lending.
 
I know back in the days before the GFC (about 15yrs back) people were getting non-recourse loans on residential, up to 60% LVR but not sure about it these days and also with a trust.

Are non-recourse loans still in existence these days? Haven't looked at finance for a long time.

Why would there be valuation issues with a 4 in a block?
 
I know back in the days before the GFC (about 15yrs back) people were getting non-recourse loans on residential, up to 60% LVR but not sure about it these days and also with a trust.

Are non-recourse loans still in existence these days? Haven't looked at finance for a long time.

Why would there be valuation issues with a 4 in a block?

Generally speaking - lack of comparable sales and one line valuation versus end value.
 
I know back in the days before the GFC (about 15yrs back) people were getting non-recourse loans on residential, up to 60% LVR but not sure about it these days and also with a trust.

Are non-recourse loans still in existence these days? Haven't looked at finance for a long time.

Why would there be valuation issues with a 4 in a block?

I've been a broker since 2001 and never seen such a thing. Are you confusing 'no doc' loans with non recourse?
 
I've been a broker since 2001 and never seen such a thing. Are you confusing 'no doc' loans with non recourse?

No, I mean non-recourse loans. I got confused, they were usually used for large commercial property transactions and don't contain a personal promise to pay. The loan depends more on the quality of the deal, not the financial of the individual. I think LVR was usually between 50% to 70% and you need to deal with the commercial lending manager usually.
 
I have heard of them for large commerical deals say $10mil plus. Not much point of a guarantee at this level is there?
 
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